Headquarters U.S. Air Force · Headquarters U.S. Air Force Air Force Financial Management & Comptroller Mr. Ricardo Aguilera SAF/FM 10 Mar 16. ... 59% fewer combat coded fighter squadrons…134

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Headquarters U.S. Air Force

Air Force Financial

Management &

Comptroller

Mr. Ricardo Aguilera

SAF/FM

10 Mar 16



Air Force Budget

Maj Gen Martin

SAF/FMB

10 Mar 16


5 Core Missions Critical to

Joint Force

Informed by the defense strategy, Air Force 30-year plan, Combatant Commanders’ expectations

and requirements of their Air Force

• Taking care of people

• Striking a balance between today’s

readiness & future modernization

• Making every dollar count

Air Force Priorities:

5 Core

Missions

• Air & Space Superiority

• Intelligence, Surveillance & Reconnaissance

• Rapid Global Mobility

• Global Strike

• Command & Control

3


Delivering Global Vigilance,

Reach, and Power…Daily

13-Jan-15

773

569

172

■ 205,000 Airmen directly support Combatant Commander requirements from home stations

■ 20,200 Airmen deployed…80,800 stationed overseas – Active, Guard, & Reserve

■ Flew nearly 1.7 million hours, equal to 194 continuous years of flying

■ Delivered 1.2 billion pounds of fuel, 345,000 tons of cargo & evacuated 4,300+ injured / ill patients

■ Conducted over 8,000 cyber ops – detected 29 intrusions / 1,400 anomalies investigated & closed

■ Executed 9,400 ISR missions in Iraq / Syria – improved targeting with fewer civilian casualties

■ Supported 25 space missions in support of National Security objectives

■ 35,000 Airmen provide the bedrock of our Nation’s security with credible nuclear strategic deterrence

We are busier than ever and our competitors are closing the capability gap 4American Airmen…amazing results, but 25 years of combat ops are taking a toll

16,273

1,194

2,020

4

Where we are

vs.

What we thought

in 2012


State of the Air Force

…Today’s Reality

13-Jan-15

■ Since Desert Storm…25 yrs of combat ops…tremendous toll on Airmen, their readiness & equipment

■ 59% fewer combat coded fighter squadrons…134 in 1991, 55 today…33 used in DESERT STORM

■ 30% fewer people…down from 946K to 664K military and civilian airmen

■ 37% fewer aircraft…from 8,637 in 1991 to 5,517 in 2017

■ Average age of a/c is 27 yrs…21 qualify for antique license plates…readiness near all-time lows

■ Demand for Air Force capability is increasing…capability advantage over competitors is shrinking

■ Leading global response against ISIL in the Middle East…still heavily engaged in Afghanistan

■ Facing a resurgent Russia…watchful eye on North Korea and rising China in the Pacific

■ Competitors closing gap in space, cyber, strategic deterrence…fielding advanced air defenses &

their own 5th generation aircraft

We are busier than ever and our competitors are closing the capability gap 5

1991

2017: 5,517 a/c1991: 946K

2017: 664K

Air Force is one of the busiest, smallest, oldest and least ready fleets in our history

…all while we continue to have unstable budget environments

16,273

5

I n t e g r i t y - S e r v i c e - E x c e l l e n c e6

Billion

FY13 Sequester

Large, immediate cuts

Readiness dropped to levels

almost as low as early 1980s

Stood down flying squadrons

for more than three months

Deferred aircraft & depot mx

Deferred infrastructure repairs

Delayed critical modernization

Broke faith with civilian Airmen

FY14 / 15 Bipartisan Budget Act

Modest, temporary budget relief

Funded readiness components

Protected F-35A, KC-46, & LRS-B

To pay bill…made tough choices:

Tried to divest force structure

Reduced military endstrength &

Management Headquarters

Took substantial risk in base spt,

facilities, munitions & MILCON

6

FY16 After Bipartisan Budget Act

Temporary relief w/ FY18 uncertainty

Fund executable readiness

components; other readiness impacts

Restore force structure (A-10 / EC-130)

Preserve F-35A, KC-46, & LRS-B

Over 3X increase in munitions buys

Right-size force to fill cyber, nuclear,

RPA & maintenance manning shortages

Preserve space advancements

6

FY13 – FY16 Recap

Cumulative impact of budget cuts…our relative capability advantage is shrinking 6

$100

$105

$110

$115

$120

$125

$130

$135

$140

$145

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

FY12 Enacted

with InflationFY12 PB

BCA Topline

FY17 BBA

FY12-FY16

Enacted

FY16 PB

FY16 BBA


FY16 Update

7

O&M$47.8

O&M$46.0

Proc$25.3

Proc$25.1

RDT&E$18.0

RDT&E$17.3

MILCON $2.1

MILCON$2.2

MILPERS$29.0

MILPERS$28.5

$0

$20

$40

$60

$80

$100

$120

BillionAF Baseline Blue TOA

FY16 Enacted

$119.1$122.2

FY16 Defense budget enacted on 15 Dec

■ Wins: Readiness, Nuclear Force Improvement

■ Flying Hour: Fully funds executable requirements

■ Weapon System Sustainment and exercises

■ Top 3 recap programs funded (F-35, KC-46, LRSB)

■ 1.3% pay raise for military and civilian personnel

■ OCO & ERI fully funded ($12.3B)

■ Where we are:

■ Airmen: Committed to grow to 317K AD

■ Funds distribution: 98% O&M, 100% Investment

■ IMSC: Funds moved from MAJCOMs

■ Spring Program Review

■ Corporate bills (e.g. execution year risk)

■ Way Ahead:

■ Omnibus IBRC scheduled 15 Apr

■ O&M Mid-year review – execution goal 83% EOM JulyFY16 PB

Your expertise is required for AF to meet execution year goals


FY17 Funding Gap:

■ Modernization: Deferred 5 F-35As & 4th Gen mods…gap closing

■ Recapitalization: Delayed incremental replacement of C-130H fleet

■ People: More needed to fill critical capability & capacity gaps

■ Infrastructure: Continues to degrade readiness / IT / QOL impacts

FY18 BCA Potential Impacts…all bad choices:■ Force structure cuts…already too small for current demand

■ Delay modernization…capability advantage is already shrinking

■ Halt readiness recovery…even less ready than we are today

■ Defer advancements in space & cyber...already contested

■ Infrastructure / base spt suffers…bow wave continues to grow

■ People…delays growth & civilian hiring in critical skill sets

8

At FY17 BBA levels, we can:

■ Sustain capacity to meet CCDR’s most urgent needs &

readiness for today’s fight…A-10 & EC-130

■ Fund readiness components (FHs, WSS, exercises, etc.)

■ Procure munitions to capacity to support current operations

■ Fund top recap prgms KC-46, LRS-B, but F-35A at reduced rates

■ Invest in nuclear enterprise (e.g., ICBM, C3, & B-2 mods)

■ Advance space capabilities & build cyber mission teams

■ Improve RPA enterprise (bonuses, enlisted pilots, & 60 lines)

■ Fund Combat Rescue Helicopter & AF One recapitalization

■ Stabilize the force (317K)…assess capability gaps

■ Leverage Total Force capabilities and capacity

■ Provide civilian & military pay increases (1.6%)

Continues recovery in readiness and capacity, with modernization challenges

Billion

At BCA…too small, less capable…need budget certainty to continue recovery

Across the FYDP

8

$100

$105

$110

$115

$120

$125

$130

$135

$140

$145

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

FY12 Enacted

with Inflation

FY12-FY16 Enacted

FY12 PB

BCA Topline

FY17 BBAFY16 PB

FY16 BBA

I n t e g r i t y - S e r v i c e - E x c e l l e n c e 9

Final Thoughts

AF strategy balances capacity, capability & readiness and supports five core missions

AF priorities remain the same…taking care of people, striking the right balance between

readiness & modernization, and making every dollar count

2015 Bipartisan Budget Act allows us to…

Restore end-strength to cover core mission sets

Continue top 3 recapitalization programs…but at reduced rates for the F-35A

Sustain capacity to meet CCDR’s most urgent needs & readiness for today’s fight

Resource strategic assets in nuclear, space, cyber and ISR mission areas

Appreciate relief BBA gives…tough choices remained (uncertainty looms in FY18)

Delay or defer vital modernization programs and critical infrastructure

Maintain military end strength at FY16 levels, but critical capability gaps still remain

Our Nation has one of the smallest, oldest and least ready fleets in Air Force history

Budget stability and repeal of BCA limits are necessary for AF to support our Nation

“The return of Sequestration will drive a choice

between ‘ready and capable now’ and ‘ready and

capable in the future.’ It’s a false choice… we must

be both for the Joint Force to be successful.”

General Welsh



Air Force Cost &

Economics

Ms. Kathy Watern

SAF/FMC

10 Mar 16


FMC – Cost & EconomicsOrganizational Structure

11

(SAF/FMC)

(Ms. Kathy L. Watern, SES)

Economics &

Business Mgt

(SAF/FMCE)

(Dr. Anne Gorney)

Cost Integration

(SAF/FMCC)

(Lt Col Anthony Smith)

Technical Director(AFCAA)

(Ms. Ranae Woods, SES)

Aircraft & Weapons(AFCAA/FMCA)

(Mr. Dave Stem)

Space Programs(AFCAA/FMCS)

(Mr. Bill Seeman)

Info Tech & Electronics(AFCAA/FMCI)

(Ms. Eunice Ciskowski)

Operations & Support(AFCAA/FMCY)

(Ms. Jennifer Bowles)

Deputy

(Mr. C. Grant McVicker, SES)

AFCAASAF

Photo not

Available

I n t e g r i t y - S e r v i c e - E x c e l l e n c eI n t e g r i t y - S e r v i c e - E x c e l l e n c e

LA

Denver

Peterson

Wright-Pat

Eglin

Pentagon &

Andrews

Hanscom

KirtlandRobins

Tinker

Hill

12

- AF Cost Analysis Agency (AFCAA) Operating Locations

OrganizationMajor Cost Activity Locations

40 personnel in OLs

30 personnel at Pentagon

60 personnel at Joint

Base Andrews


“What’s Happening?”

13

Near-Term

Continue refinement of cost support to POM process (e.g.,

FMP)

Cost integration into planning process (FY19)

Increase sustainment capability/program affordability

On-going support to Total Force Continuum

Data research and method improvement activities

Opportunities

Upfront involvement in peer reviews

Diminished source selection capability

Revitalize & increase schedule capability

Increase role in enterprise EAs & BCAs

Earlier involvement in the acquisition process (e.g., AoAs)


Looking ForwardCost Opportunities

Cost Experience

Rotations

Career Broadening

Cost Crosscuts Across Many Areas

Education

AFIT Masters of Science in Cost Estimating

Naval Post Graduate School (NPS)

DAU Curriculum

14

There is Always Opportunities for Costers!



Air Force Financial

Operations

Mr. Thomas Murphy

SAF/FMF

10 Mar 16

16

…on Route 66

17Integrity – Service – Excellence

FIAR Update

Congressional Desire: Fix it

– Fix it

Progress

Unqualified opinion on Fund Balance with

Treasury

Completed FY15 Schedule of Budgetary

Activity (SBA) Audit

Working Mission Critical Asset Valuation

FY16 SBA just started 1 Feb 2016

Monitoring Challenges

Legacy Systems

Reconciliations

Supporting Documentation

Sustaining Control Environment

18Integrity – Service – ExcellenceIntegrity – Service – Excellence

What is DEAMS?The Air Force’s financial

management & accounting

Enterprise Resource Planning

(ERP) solution utilizing the

Oracle eBusiness Suite

Program Status Slowed down deployment schedule

Upcoming releases for FY16/17 include:

Performance enhancements

Hardware upgrades

Foreign currency/foreign national payroll

Acquisition functionality- MOCAS/CCAR

Reimbursable programs- JOCAS

Continued enhancements to online training, FM School

House, and video instruction

Oracle Federal Financials

iProcurement

iReceivables

iSupplier

Project Costing

Project Billing

Purchasing

Communications DEAMS Outreach Portal:

http://go.usa.gov/WPqQ

- Help Desk Announcements

Communications Library

(Fact Sheets, DEAMS News)

- Education & Training Corner

milBook/DEAMS Users Group:

http://go.usa.gov/Z3uA

DEAMS Monthly Users Forum

(every 3rd Wednesday, 1330-1500 EST)DEAMS plays a critical role as the target core accounting environment

for all AF enterprise systems necessary to sustain audit readiness

Pre-deployment

Classroom

Web Based Training

(WBT) via FMDLC

Weekly Webinars

Published Instructions

(Job Aids, User

Guides, etc.)

Deployments 114 Installations

AMC

ACC

AFGSC

AETC

AFDW

ANG

AFRC

DEAMS Training

DEAMS Update

http://go.usa.gov/WPqQ

http://go.usa.gov/Z3uA

https://fm.adls.af.mil/

19Integrity – Service – ExcellenceIntegrity – Service – Excellence

BPR

20Integrity – Service – Excellence

Accounting Initiatives

Military Transportation Authorization (MTA)

charges paid with GTC

AMC initiative to use charge against GTC vice manual

billing process

Pilot at aerial port starts May 16

Traveler would be

reimbursed on voucher

Virtually eliminates intensive manual billing

process– Fix it

Expanded GPC Use

Teamed with Contracting to use for (Cable TV, Utility, &

Telecom) Service Contract Payments

Reduces payment delays

Increases GPC rebates

Reduces late fees

Account Management and Provision System

(AMPS) Rollout

Designed to automate and standardize DFAS system

access requests

Improves visibility and efficiency of system

access requests and maintenance

Efficient processing for new and departing

employees and contractors

Currently using for ADS, DJMS, GAFS

Potential adoption for future AF systems

G-Invoicing

Captures and maintains trading partner info cradle to

grave

A standardized business process for Inter/Intra-

Governmental Transactions (IGT) within DoD

Central repository of all agreements

A DoD Enterprise solution

Data standards used Enterprise wide



24 March 2016 21

Air Force Programs

Col Chris Nutting

SAF/FMP

10 Mar 16


Organizational Structure

24 March 2016 22

SAF/FMP

Brig Gen Edward Fienga Ms. Patricia Schwenke, SES

Panels (Assigned)

Air Superiority/Global Precision Attack

Command Control/Global Integrated ISR

Nuclear Deterrence Operations

Rapid Global Mobility/Special Ops/Building Partnership

Space/Cyberspace Superiority

Panels (Attached)

Personnel and Training (A1)

Manpower (A1)

Installation Support (A4)

Logistics (A4)

Research, Development, Test and Evaluation (AQ)

Special Access Required (A5/8)

Engine Room

Assessments

Corporate

Database

Exercise

Special Programs

SAF/FMPE SAF/FMPM


FMP Goals and Objectives

24 March 2016 23

We advise Air Force leaders about the translation of strategic priorities into executable and defendable

programmatic decisions balanced across limited resources and competing priorities.

We do this by formulating and defending a fiscally responsible Program Objective Memorandum (POM)

responsive to national, DoD, and Air Force strategy and Congressional intent.


National Security Strategy

National Military Strategy

Quadrennial Defense Review

AF Vision

AF Strategic Master Plan

Future Operating Concept

Defense Planning Guidance Strategic Planning Guidance

Capability Development Planning

Plan-to-Program Guidance

Strategic Portfolio Reviews

Congressional Interests & Actions

Emerging DoD & AF

Decisions

Emerging Threats & World Events

Building the AF Program Objective Memorandum (POM)

Acquisition Program Performance

Fiscal Guidance

NDAA/Approps Bill

COCOM Demands

RMD


Building the AF POM → PBR → PB → NDAA/Approps Bill

POM

February – June

Involves

CFLs/MAJCOMS

Air Staff

FMP/B/C

Objective

Tell AF Story

Rqmts vs $$$

Program/Budget Review

July - December

Involves

OSD & entire DoD

Air Staff

Objective

Defend AF

Advocate for TOA

President’s Budget

February

Involves

FMB

FMP

Objective

Executable budget

Basis for next POM

NDAA/Approps

“1 Oct”

Involves

Congress

Result

Define the AF

Fund the AF


FY18 Programming Timeline

24 March 2016 26


Documents

Headquarters U.S. Air Force · Headquarters U.S. Air Force Air Force Financial Management & Comptroller Mr. Ricardo Aguilera SAF/FM 10 Mar 16. ... 59% fewer combat coded fighter squadrons…134